Motorola Casts Handset Business Off To Survive On Its Own

from the fly,-fly,-fly-away-little-razr dept

A few months ago there were rumors that Motorola might sell off its struggling handset division to another provider, however there didn't seem to be many interested buyers. It appears that Motorola has chosen option two instead: spin off the business to survive (or fail) on its own. The business accounts for the largest chunk of Motorola's earnings, but it is also a huge drag on earnings. Basically, the other parts of Motorola had been subsidizing the handset business. It's still rather amazing how slow Motorola is to come out with interesting handsets that people want. It had a huge success with the Startac in the 90s and then took nearly a decade before finding another hit with the RAZR. But just as with the Startac, it milked the RAZR concept for all it was worth and now is left in the dust while other firms are putting out much more innovative phones. Spinning off the business may separate it from the other parts of Motorola's business, but unless it starts designing phones people actually want, it's not going to make much of a difference.

Filed Under: handsets, spinoffs
Companies: motorola

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  1. identicon
    Colin, 27 Mar 2008 @ 9:32am

    Interesting article and discussion...

    but I wonder how many people are like me - they don't want innovation, they want a phone that works. I've tried Ericssons and Samsungs and several others and kind of concluded that while they may be good in major cities where the cell towers are as thick on the ground as the pidgeons, they have really bad reception in middle America where I spend a lot of time on business. Motorola phones always seem to be able to pull in a connection. Perhaps they should try making the unlock codes freely available (and the unlock process easier for the end user) so us world travellers can swap our SIM cards out - that ought to make the phones really desirable.

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